The two charts below today are interesting bedfellows as while one talks about yet more, likely impractical, hydrogen ambitions, the other talks about a possible solution.
Source: OCI, NortH2, April 2022
We continue to see hydrogen announcements that are highly unlikely to be met on any near-to-medium term horizon because the renewable power will not be there at the right price to support them and we showed a chart earlier in the week that suggested hydrogen investment would not really ramp until well into the next decade.
Source: Intergovernmental Panel On Climate Change, NGI, April 2022
In the meantime, we still need to decarbonize and the expectation in the chart above about higher CCS is likely the best way forward, whether to make blue hydrogen for industrial carbonization or combined cycle methane-based power (possibly with oxy-combustion) or methane fuel cell-based power and hydrogen with CCS. There are all more manageable over the near horizon than chasing a limited supply of renewable power in our view. For more see our dedicated ESG and Climate work.